Pronunciation: [fˈʊl kˈɒst] (IPA) 
The spelling of the word "full cost" is fairly straightforward. The first syllable, "full," is spelled phonetically as /fʊl/ with a short "u" sound followed by the double "l". The second syllable, "cost," is phonetically spelled as /kɔst/ with an "o" sound and a "st" ending. Together, the word is pronounced as /fʊl kɔst/. It refers to the complete expense of a product or service, including both direct and indirect costs.
Full cost refers to the total expenses incurred by a company or individual in the production, operation, or provision of a product or service. It represents the entire amount of money required to cover both direct and indirect costs associated with a particular activity or project.
In business, the full cost includes all relevant expenses, such as raw materials, labor wages, equipment and facility costs, utilities, marketing and advertising expenditures, administrative expenses, and any other overhead costs. It encompasses both variable costs, which fluctuate with the level of production or sales, and fixed costs, which remain constant regardless of the volume of output.
Understanding the full cost is crucial for effective financial planning, budgeting, and pricing decisions. By considering all the associated costs, businesses can accurately determine the amount of capital required to continue their operations, assess the profitability and sustainability of their ventures, and establish appropriate selling prices that cover both direct expenses and future investments. Furthermore, a comprehensive understanding of the full cost allows managers to evaluate the efficiency of their production processes and identify areas where costs can be reduced or eliminated.
In summary, the full cost represents the complete set of expenses involved in a particular business activity, considering both direct and indirect costs. It serves as a valuable tool for financial analysis, decision-making, and assessing the overall financial health of an organization or project.
The word "full" originated from Old English "ful", meaning complete or entire. It has Germanic roots and is related to the Old High German "fol", Old Norse "fullr", and Gothic "fulls".
The word "cost" came from the Old French "coste", which evolved from the Latin "costa", meaning rib or side. In medieval Latin, "costa" was used to refer to the expenditure of money, giving rise to the meaning related to expense or price.
When combined, "full cost" refers to the total expense or complete price of something.
